Same Sex Couples
In accordance with the United States Supreme Court’s decision in the case styled as Obergefell vs. Hodges, -- S.Ct. --, 576 U.S. -- (June 25, 2015), Kentucky will now license a marriage between two people of the same sex, and will recognize a marriage between two people of the same sex when their marriage was lawfully licensed and performed out-of-state. The court decision affords new filing-status options to married same-sex couples when filing their Kentucky income tax returns, and classifies each as a “surviving spouse” for purposes of both Kentucky’s income and inheritance taxes. The guidance provided below supersedes that found in the Kentucky Tax Alert, Nov. 2013, Vol. 32, No. 6.
Income Taxes: When filing income tax returns, married same-sex couples may elect, for any year, to file a joint return or a combined return, rather than filing separate returns, if they are married at the close of the taxable year. A surviving spouse of a married same-sex couple may also elect to file a joint return or a combined return if the spouse died during the taxable year.
Inheritance Taxes: The survivor of a married same-sex couple will be recognized as a Class A beneficiary for inheritance tax purposes. The exemption from inheritance tax authorized for the total inheritable interest passing to a surviving spouse now extends to married same-sex couples.
Claims for Refund: A married same-sex couple whose marriage was lawfully performed out-of-state may apply for a refund of any overpaid taxes by submitting an amended return within two (2) years from the date the tax was paid, as provided in Ky. Rev. Stat. §134.590(1) and (2).
Questions: Questions concerning the effect of the court decision on Kentucky income or inheritance taxes may be directed to the following at the Kentucky Department of Revenue:
Sarah Watts (502) 564-7658 (income tax)
Jim Orr (502) 564-9306 (inheritance tax)
Doing Business in Kentucky
For general information about starting or operating a business in the Commonwealth, visit the Kentucky One Stop Business Portal.
Online Filing – Withholding Tax Returns
The Kentucky Department of Revenue now offers online filing of Withholding Tax returns. WRAPS, the Withholding Return and Payment System, provides the ability to file Withholding Tax K-1 and K-3 returns online. Tax periods prior to registration will not be available in WRAPS.
Taxpayers may file returns, view and/or amend previously filed online returns, request refunds and credit forwards, as well as the ability to pay Withholding Tax using the Enterprise Electronic Payment System.
Online Withholding Tax Return
and Payment System, WRAPS
WRAPS Public User Guide [PDF - 1825K]
WARNING . . . Please be aware of IRS Telephone Scam
Alert: New Phishing Scam
The IRS has learned of a new phishing scam in which taxpayers receive e-mails purporting to be from the Taxpayer Advocate Service and bearing the IRS logo. The e-mail contains a bogus case number and says: “Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”
The email contains a link where the recipient can find contact information for the “advocate” assigned to their case; when the recipient clicks on the link, personal information, such as the recipient’s legal name and contact information, is solicited. There’s also a link to review “your reported income,” that again solicits this kind of personal information.
If you get inquiries from constituents about these messages, please tell them NOT to click on the link and to forward the e-mail to the IRS’s designated address for suspicious/scam e-mails: email@example.com.
2014 Refund Status
Click here to check the status of your 2014 Individual Income Tax refund.
E-File & E-Payment Options.
E-FILE: Your Best Option
Individual Income Tax:
The Kentucky Department of Revenue in conjunction with the Internal Revenue Service (IRS) accepts the Kentucky Individual Income Tax Return for Full-Year Residents (Form 740), Kentucky Individual Income Tax Return for Nonresidents and Part-Year Residents (Form 740-NP) and their supporting forms and schedules by method of the Modernized E-File system (MeF).
January 20, 2015 through April 15, 2015, taxpayers may electronically file through MeF a Form 40A102 - Extension of Time to File Individual Income Tax Returns for Kentucky.
The Department of Revenue strongly encourages Kentucky taxpayers to take advantage of the benefits of electronically filing their tax returns. Last year, approximately 85 percent of Kentucky taxpayers opted for the safest, fastest and easiest way to submit their individual tax returns via electronic filing. Returns filed through MeF are typically received and acknowledged within a few hours from the time the taxpayer submits the return for filing.
Kentucky typically processes refunds from returns filed via MeF in 7 to 10 working days. By comparison, filing via a paper return results in an average of 8 to 10 weeks to process and issue refunds.
Filing the Form 740 electronically enables the taxpayer to have their refund deposited directly into their financial institution account.
Electronic filing of the Form 740, Form 740-NP and Form 40A102 enables the taxpayer to take advantage of debiting the tax due amount from their financial institution. Taxpayers may schedule a debit of estimate tax payments at the time of filing their Form 740 and Form 740-NP.
Your debit request will not be processed prior to the date specified when your return is filed. It could take up to 2 weeks after that date before your account is debited. All debit payments are considered received on the date the debit was requested even though there is a delay when withdrawn from your bank account.
If you select April 15th as your debit date, your payment will be treated as timely even though it is not withdrawn from your account on that day.
You may qualify to file your federal and state individual income tax returns for free. See the Free Electronic Filing information found through the Free File Alliance link below. Please review each offer carefully to see if you qualify.
Business Income Tax:
The Kentucky Department of Revenue in conjunction with the Internal Revenue Service (IRS) accepts the Kentucky Corporation Income Tax and LLET Return (Form 720) and supporting forms and schedules by method of the Modernized E-File system (MeF).
This year in addition to Form 720, the Kentucky S Corporation Income Tax and LLET Return (Form 720-S), Kentucky Partnerships Income and LLET Return (Form 765) and their corresponding forms and schedules may be filed electronically through MeF.
Electronic filing of the Form 720, Form 720-S and Form 765 enables the taxpayer to take advantage of debiting the tax due amount from their financial institution.
The start date for electronic filing the Form 720 and 720-S is 01/26/2015. The start date for electronic filing the Form 765 has not been determined.
To determine what forms are supported by your software, please check with the company that develops your software.
Free Electronic Filing
Do you qualify to file your Kentucky state income tax for free? Click on the logo above or select Free File Offers from the menu on left-hand side of the page to see the offers available.
2014 Tax Reform Proposal
Gov. Beshear's Tax Reform Commission
The Tax Reform Proposal by Gov. Steve Beshear
A Presentation to House Appropriations and Revenue
February 11, 2014
by Lt. Gov. Jerry Abramson
Disaster Relief Sales and Use Tax Legislation
County Information links to an interactive map that directs you to each of Kentucky's 120 counties. Find address, phone, fax, email & Web site information on each county's PVA, Sheriff, Clerk, Attorney and Judge Executive.